How to make a successful business plan— February 26, 2015
EB 5 business plan is a person’s written description of his future strategy about the business that he wants to pursue outside of the country. It is the main requirement that you need for your EB-5 visa, also known as immigrant investor program. The EB-5 visa is one of the most convenient ways for a wealthy person to gain permanent residence.
For EB-5 category, it is required that there is an investment of $ 1 million, $500,000 in a high employment or in the rural area with a commercial enterprise which will be employing 20 full time US workers. If you are looking to start a new in the US, just like in the EB-5 visa, you are also required for a business plan. Investors looking to invest in existing business are exempted for this though.
The Administrative Appeals Office also known as AAO issued a precedent decision in 1996 called as Matter of Ho. The Matter of Ho sets the requirements need for application of EB-5 business plans. According to Matter of Ho, an investor must present a comprehensive business plan that will demonstrate the following elements or requirements:
- Your business plan must have a complete description of your business, what products or services it is about to sell and the objectives of your business.
- It must have marketing analysis that includes the names of your competing business as well as their strengths and weaknesses; a comparison of the competing business’s products plus the respective pricing structures; and a description of your target market/ potential customers.
- Your business plan must include a confirmation that your company has received/ in the process of applying for your projects needed specific permits/licenses.
- It must detail contracts that were executed for the supply and distribution of your products.
- It must provide an overview of your marketing strategy—the pricing, the advertising, the works.
- If possible, it must also describe the manufacturing process of your products, the materials needed as well as the sources for raw materials.
- It must also highlight your business’s organizational structure.
- It must contain your requirements for your business’s staff and a program for the hiring procedure as well as the descriptions of all job positions, and
- It must provide projections for sales, cost and income and the business plan mist detail the bases for that.
Your business plan must reflect all of the elements listed above. But apart from those, there are still some additional requirements related to business plans were imposed by the Neufeld Memorandum. That memo noted that a change—any change—in a business plan can be considered a draft which can result to the denial of your I-629 petition. As such, there is a draft guidance issued to somewhat loosen the requirements. However this has not been finalized yet. Because of this requirements change, general and conservative types of EB-5 business plans are the only ones that may have easier passing time for the I-829 stage.
In summary, your business plan must have all the necessary key points of your project and it must be able to prove the feasibility of your business project if ever it is reviewed by a third party. To make sure you can accurately provide all the necessary elements of your business plans, you can hire business plans writers to write for you a comprehensive business plan that will reflect all your projections and plans for the future of your business.
Leave a reply